P16-6A The following data, presented in alphabetical order, are taken from the records of Urbina Corporation. Accounts payable $240,000 Accounts receivable 140,000 Accumulated depreciation—building 180,000 Accumulated depreciation—equipment 52,000 Allowance for doubtful accounts 6,000 Bonds payable (10%, due 2018) 500,000 Buildings 950,000 Cash 42,000 Common stock ($10 par value; 500,000 shares authorized, 150,000 shares issued) 1,500,000 Dividends payable 80,000 Equipment 275,000 Goodwill 200,000 Income taxes payable 120,000 Investment in Flott common stock (10% ownership), at cost 278,000 Investment in Portico common stock (30% ownership), at equity 380,000 Land 390,000 Market adjustment—available-for-sale securities (Dr) 8,000 Merchandise inventory 170,000 Notes payable (due 2011) 70,000 Paid-in capital in excess of par value 130,000 Premium on bonds payable 40,000 Prepaid insurance 16,000 Retained earnings 103,000 Short-term stock investment, at fair value (and cost) 180,000 Unrealized gain—available-for-sale securities 8,000 The investment in Flott common stock is considered to be a long-term available-for-sale security. Hint: Prepare a balance sheet. (SO 5, 6) Instructions Prepare a classified balance sheet at December 31, 2010. Total assets $2,791,000
URBINA CORPORATION
Balance Sheet
December 31, 2010
Assets
Current assets
Cash $ 42,000
Short-term stock investment,
at fair value 180,000
Accounts receivable $140,000
Less: Allowance for doubtful
accounts 6,000 134,000
Merchandise inventory 170,000
Prepaid insurance 16,000
Total current assets 542,000
Investments
Investment in stock of less than 20% of
owned companies, at fair value 286,000
Investment in stock of 20%–50%
owned company, at equity 380,000
Total investments 666,000
Property, plant, and equipment
Land 390,000
Buildings $950,000
Less: Accumulated depreciation 180,000 770,000
Equipment 275,000
Less: Accumulated depreciation 52,000 223,000
Total property, plant,
and equipment 1,383,000
Intangible assets
Goodwill 200,000
Total assets $2,791,000
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable $ 70,000
Accounts payable 240,000
Income taxes payable 120,000
Dividends payable 80,000
Total current liabilities 510,000
Long-term liabilities
Bonds payable, 10%, due 2018 $ 500,000
Plus: Premium on bonds payable 40,000
Total long-term liabilities 540,000
Total liabilities 1,050,000
Stockholders’ equity
Paid-in capital
Common stock, $10 par value,
500,000 shares authorized,
150,000 shares issued and
outstanding 1,500,000
Paid-in capital in excess of par value 130,000
Total paid-in capital 1,630,000
Retained earnings 103,000
Total paid-in capital and retained
earnings 1,733,000
Add: Unrealized gain on available-for-
sale securities 8,000
Total stockholders’ equity 1,741,000
Total liabilities and stockholders’
equity $2,791,000